I want to create a new small business. I have found a Partner to assist me. I want to be able to confirm to them that the business will be shielded from my current tax liabilities.
The business may be shielded in a limited liability entity, but your ownership interest could still be subject to creditor claims. Meet with a business attorney to discuss the various planning methods you might use. Tax liabilities, in particular, are difficult to avoid since the "tail" the debtor in most instances. You don't say whether these are Federal or State liabilities, and that information is also important in order to answer. I've re-posted your question in the taxation section, which may elicit a more specific answer.
I hope this helps you. If it has, please mark as "helpful" or a "best" answer. ******************** I am licensed in Michigan and Illinois, and regularly handle legal matters of this sort. The answer provided here is based on the limited facts you have submitted Actual documents, expanded facts, and local law knowledge are all necessary to provide a comprehensive and specific answer to your questions. The opinion offered here is for your information only and no client-attorney relationship is created by this response.
The best way to shield yourself from existing tax liabilities is to deal with them. If you get yourself in compliance, including an installment agreement for unpaid taxes, penalties and interest, the IRS will take you out of collections.
I will add to Mr. Messinger's good advice that certain tax olbigations, like employee withholding taxes, can be a personal obligation, not even dischargable in a bankruptcy. A very careful counseling is needed with independnet attorneys, one representing you, one representing the new partner, and perhaps even a third attorney representing the entity to be formed! For the benefit of all concerned, do it right.
This commentary does not result in any attorney/client relationship nor constitute legal advice as to a particular fact situation or status of a reader. Consult and retain legal counsel in the State of Michigan for pursuit of such a relationship.
The business, properly formed and operated will be separate but your interest is an attachable personal asset.
See an attorney. There is also the question if this is a “successor” making matters worse. You need to counsel with an attorney and, actually, clean up your past problems.
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